Article 459 of the Capital Requirements Regulation (CRR) provides that the European Commission (Commission), assisted by the European Systemic Risk Board (ESRB), has to submit a report, at least on an annual basis, to the European Parliament and the Council of the EU on market developments potentially requiring the use  this Article.

Under Article 459 CRR, the Commission may impose, for a period of one year, stricter requirements concerning the level of banks’ own funds, large exposures, or public disclosure, under specific conditions, in particular upon the recommendation or the opinion of the ESRB or the European Banking Authority. The required conditions are that these measures are necessary to address changes in the intensity of micro-prudential and macro-prudential risks which arise from market developments in the EU or outside the EU affecting all Member States, and that the instruments of the CRR / CRD IV are not sufficient to address these risks.

The Commission has now published a report on market developments in the past year potentially requiring the use of Article 459 of the CRR. The Commission reports that it has not yet seen any circumstances that would warrant the use of Article 459 CRR.

View European Commission report on use of Article 459 CRR powers, 8 March 2017